Asset Management

Performance fees slump as fund managers struggle to deliver

Fees charged for beating benchmarks dropped last year as active funds failed to shine

Active fund managers had a tough year in Europe with many failing to beat their benchmarks Chris Ratcliffe/Bloomberg via Getty Images
Active fund managers had a tough year in Europe with many failing to beat their benchmarks Chris Ratcliffe/Bloomberg via Getty Images

The amount of revenue generated by asset managers via fund performance fees has fallen to a new low, as stockpickers consistently fail to deliver benchmark-beating returns. 

Performance fees are popular with some asset managers across Europe, allowing them to charge a fee in addition to an annual management charge once they have exceeded a specified benchmark.

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